What is the difference between the deficit and the debt?
The budget deficit is the difference over some time period, usually a year, between government receipts and outlays (expenditures plus transfers). When outlays exceed receipts, the budget is in deficit. The national debt is the accumulation of past deficits. The budget deficits in the 1980s and the early 1990s were often over $150 billion a year or more. The national debt at the end of 1998 was about $3.3 billion on a net basis.
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What will be an ideal response?
Which of the following allegedly contributed to the stagflation in the mid-1970s?
A. Appreciation of the dollar. B. A sharp drop in the prices of farm products. C. A dramatic increase in oil prices. D. Rising productivity in manufacturing.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The most commonly used tool of monetary policy in the U.S. is ___________ market operations.
a. open b. closed c. private d. public